Google has completed a deal worth around £700m to build a new British
headquarters at Kings Cross in London.

In one of the biggest commercial property deals in the UK, the US technology giant will build a 1m sq ft building to house its British operation.

The new headquarters, built on a 2.4 acre site and designed by architects Allford Hall Monaghan Morris, will see workers relocate form Google’s offices in Victoria and Holborn.

The deal, first revealed by The Sunday Telegraph is a major coup for the site’s owner King’s Cross Central, and for the wider economy as Google signals a major vote of confidence in Britain.

“This is a big investment by Google, we’re committing further to the UK - where computing and the web were invented. It’s good news for Google, for London and for the UK,” said Matt Brittin, vice president for Northern and Central Europe.

The building will range from seven to 11 storeys, and construction is expected to start later this year, with completion scheduled for 2016. The site has been secured through a 999-year lease, and property group Argent will be developer.

In another boost for London, Hammerson and Westfield agreed a joint venture to develop a £1bn retail scheme in Croydon, after months of deadlock between the two companies.

Croydon’s two main shopping centres, the Whitgift Centre and Centrale, will be redeveloped and combined, creating an estimated 5,000 jobs. Planning consent is expected this year, with construction likely to start in 2015.

It ends month of uncertainty, after Hammerson and Westfield both put forward plans with the hope of developing a scheme independently.